May 2019 is an important month in the Singapore Housing and Development Board (HDB) calendar. HDB launched the sale of new flats in various projects. Apart from sharing more details on the sale, the HDB has also provided information about the current condition of the resale market.
During the month of May, HDB will be offering approximately 3,400 built-to-order (BTO) flats in various properties – Tengah, Kallang Whampoa and Woodland.
As per an official HDB announcement published on the board’s website, there will also be a concurrent sale of balance flats exercise. Together, the BTO and the sale of balance offerings consist of 6,753 flats.
The BTO offering consists of various types of flats to meet the diverse needs of Singapore residents. These range from two-room Flexi to five-room flats. A selection of two-room flats in Kempas Residence is made available solely to seniors aged 55 or higher. These are apartments on short leases ranging from 15 to 45 years that address the specific needs of the targeted demographic group.
The SBF offering will consist of 3,268 flats ranging from two-room Flexi to five-room and 3Gen units. Most of these flats are reserved for first-time applicants, whether families or single individuals.
SBF flats are available in both mature and non-mature properties. The location, the size and the condition of the flat are both determining for its price. A three-room flat in a non-mature location averages a price of 144,000 dollars while the same type of flat in a mature town has an average price of 123,000 dollars.
The new HDB flats come with a generous subsidy that takes into account key factors like the location of the property, its size, market conditions, specific flat attributes, etc.
Compared to the prices of the resale flats in the same vicinities, the prices of the new HDB BTO flats are considerably lower.
First-time property owners who meet the HDB conditions can receive a housing grant of up to 80,000 dollars. These are provided in the form of an Additional CPF Housing Grant that can reach up to 40,000 dollars and a Special CPF Housing Grant that can also reach up to 40,000 dollars.
Depending on the size of the flat and the amenities, those qualifying for the grant will end up paying very little for ownership. The amount that potential owners will end up taking out of their pocket is going to range from 6,000 dollars for a two-room Flexi apartment to 184,000 dollars for a four-room flat or 331,000 dollars for a five-room flat.
The financial details and the sum that first-time owners can save through a grant can be found on the official HDB website in the following announcement.
Since the beginning of 2019, HDB has also announced simplified, faster and much more streamlined procedures for residential property applicants.
Advances in terms of reducing the balloting time for BTO flats have already been made.
Starting from the May 2019 sale exercise, new balloting terms and conditions come into effect. These involve a reduction in the waiting time from the previous six weeks to three weeks.
This sales exercise will produce one additional change that pertains to accessing Step-Up CPF Housing Grants.
Previously, such grants for lower-income families allowed for the provision of 15,000 dollars to those living in subsidised two-room flats in non-mature towns. As of May 2019, second-timer families living in public rental flats also become eligible for the Step-Up CPF Housing Grants. The only condition is for such families to apply for two or three-room resale flats in non-mature properties.
Grants are also available under the SBF programme. Those who qualify for a grant and would want to acquire a two-room Flexi flat will have to pay as little as 5,000 dollars. The additional payment is highest for 3Gen properties (351,00 dollars) and executive properties (475,000 dollars).
HDB provided a quick update of the condition of the resale market in May 2019.
The resale price index (RPI) decreased by 0.3 per cent to reach 131.0 in the first quarter of 2019 as compared to an RPI of 131.4 in the last quarter of 2018.
The volume of resale transactions has also gone down. It decreased 14.2 per cent from 5,637 transactions in the final quarter of 2018 to 4,835 transactions in the first quarter of 2019. In comparison to data for the first quarter of 2018, however, the transactions for the first quarter of 2019 were 8.5 per cent higher.
Median resale price varies from one property to another. The most expensive four-room flats, for example, are located in Queenstown. There, the average is 720,000 dollars. The priciest five-room flats are located in Toa Payoh where the average is 818,000 dollars.
As far as the rental market goes, approved applications for renting out HDB flats went up 2.6 per cent from 11,479 approved applications in the final quarter of 2018 to 11,755 approved applications over the first three months of 2019.
Approved applications are almost unchanged on an annual basis – a decrease of 0.5 per cent in comparison to data for the first quarter of 2018. There were 57,764 HDB rented out flats in the period ending on March 31, 2019. This number is 1.8 per cent higher in comparison to data for the first quarter of 2018.
Median rents are quite diversified, depending on the size of the property and its location. The average for two-room flats is in the 1,400 to 1,600 dollars. The priciest rentals for three-room flats are available in the Central location (2,150 dollars) while the most affordable rentals are available in Woodlands (1,400 dollars).
Four-room flat rentals come in the range from 1,700 dollars in Choa Chu Kang to 2,700 in the Central town. For five-room flat rentals, the price range is from 1,800 dollars in Choa Chu Kang and Woodlands to 2,800 dollars in Bukit Merah and Queenstown.
With these new launches being announced, you might have your eye on some. It will be good to start planning your financials, planning for your new home interior design and renovation and of course, to start looking for an interior design company who can work with you to make your dream home a reality!
